The SPD party, headed by German Chancellor Angela Merkel, said they had been able to reach an initial deal on the formation of the new coalition Government. The Euro rallied on the news reaching levels not seen since 2014.
Economist research from Cambridge University stated that over 480,000 jobs could disappear from the UK by 2030 if Brexit negotiations go sour and end in no deal, increasing pressure on the government to secure a deal.
Prime Minister May’s efforts to reshuffle her cabinet met with resistance, with the education secretary Justine Greening resigning from the government while staunch Brexiteer Nigel Farage tweeted to his 1 million+ followers about having a second referendum and settling the question to leave or stay in the EU once and for all.
With a strong rally in 2017, Bitcoin started 2018 with high volatility, swinging over 25% in a span of 10 days.
We will have UK CPI data on Tuesday 16 January with consensus expectations of 3.0% YoY growth.
On Thursday January 18 Chinese GDP data is expected to come in at 6.7% YoY growth.
A score of -1.0 indicates an extremely poor economic outlook, which is accompanied by a high probability of negative returns in risky asset classes like equities. The Risk Barometer tilts our portfolios away from equities during such periods.
A score of 0 indicates a neutral economic outlook with almost equal probability of positive and negative returns in risky asset classes like equities. The Risk Barometer maintains a balance between equities and other asset classes during such periods.
A score of +1.0 indicates an extremely positive economic outlook, which is accompanied by a high probability of positive returns in risky asset classes like equities. The Risk Barometer tilts our portfolios towards equities during such periods.
*as at latest realignment 31/12/17
The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.